Forget Ah Long go for TEKUN Nasional to loan.

Remember at local TV advertised that said " Kami bukan Ah Long, Kami mau tolong. "

Malaysian Entrepreneurs who are keen to venture into small business or increase their working capital should apply for a loan from Yayasan TEKUN Nasional (YTN) instead of turning to unscrupulous 'Ah Long' for the loan.

The Entrepreneur Fund (TEKUN) managed by YTN had disbursed up to 134,000 small loans to about 80,000 entrepreneurs all over the country up to December 2006.

YTN managing director Syed Kamarulzaman Syed Zainol Khodki Shahabudin said that under the Ninth Malaysia Plan, YTN had been allocated RM350 million and that it had no problems in giving out loans to assist small-scale entrepreneurs.

"Anyone who fulfils the loan conditions should be able to obtain the loan. It's so much better and safer than borrowing from a loan shark," he said.

CONDITIONS SET BY TEKUN

Of late, "Ah Longs" have been hogging the headlines for resorting to criminal intimidation and other brutal tactics against those who failed to pay up. Though the media has given wide coverage on the issue, there are still individuals who are ignorant and resort to borrowing from these loan sharks.

Some gave the excuse for turning to "Ah Longs" because agencies like TEKUN, MARA and banks failed to help them.

In refuting this, Syed Kamarulzaman explained that the conditions imposed for loans by TEKUN were minimal but if they failed to fulfil YTN's prerequisites, they would not get the loans.

"The borrowers only need a permit, place to conduct the business and they must conduct the business full time. The process is facilitated by 192 TEKUN branches all over the nation with the cooperation of the District Entrepreneur Development Council (MPUD).

Unlike other financial agencies, TEKUN does not require the loan applicants to do much paperwork. They each need to fill up one form only.

"We also have to ensure that with the loan, they can do business and the income generated can be used to pay back the loan," he said.

LOAN PROCESS

In the early days, loans were approved within 90 days. But now the process takes only 45 days.

"For a short-term loan, like for operating a Ramadan stall, the process takes only two weeks," Syed Kamarulzaman said.

He, however, regretted that many of the businessmen only turned to TEKUN when they were in financial trouble.

"As they feel the 45-day period is too long, they end up going to Ah Long who can approve their loan within a day. In fact, as business people, early planning is necessary, rather than acting at the last moment," he said.

"There is another category of Ah Long described as 'soft Ah Long' who don't lend out money but make sure the borrowers are indebted to them," he revealed.

"For example, they supply items to retailers, farmers and fishermen and establish good rapport with them.

"The catch is that they offer the products at lower prices or allow credit to the buyers who can pay in instalments.

"As they are indebted, they are bound to return to the soft Ah Long. This is in contrast to Bumiputera suppliers who offer goods at higher prices as they procured them at high prices too.

"These are the problems plaguing Bumiputera businessmen. Poor business networking and lack of knowledge in marketing their products add to their woes," he lamented.

However, he felt that many of those who got into trouble with Ah Long were those who borrowed for reasons other than doing business. They used the money to paying off an existing loan, for example.

Only by doing business they can expect returns that can be used to pay off the debts and reinvest to improve their business.

ENTREPRENEURSHIP A CAREER

With eight new products launched last December, it is hoped that youths, women, rural folk and undergraduates will pursue entrepreneurship as a career of choice.

The products are TEKUN Niaga, TEKUN Tunas, TEKUN Tani, TEKUN Ternak, TEKUN Rakan Niaga, TEKUN Jangka Pendek, TEKUN Pelancongan and TEKUN 2nd Chance.

Through its workshops, YTN provides guidance for entrepreneurs before and after receiving the loans and this has helped create many new, successful Bumiputera businessmen.

"Those selected to attend the workshops are the ones with potential and are serious in conducting business. They are also shown the way to establishing business networking," said Syed Kamarulzaman.

On unemployed graduates, he said various efforts were being taken to lure them into entrepreneurship and TEKUN had a number of loan schemes for them.

If anyone needs capital to start a business, TEKUN is ready to help. In fact, the foundation also provides short-term loans to graduates who want to start a career as insurance agents.

TEKUN is doing all its best to help these undergraduates establish themselves.

So, it's up to the people, whether they want to look for Ah Long or TEKUN when they need help.

By Nurul Halawi Azhari

-- BERNAMA

TEKUN Financing Scheme

Objective

To provide microfinance facility for working capital requirements to assist the small entrepreneurs in their existing new start-up business and project implementation.

• Maximum tenure : 6 months to 5 years

• Minimum financing : RM500

• Maximum financing : RM50,000

Eligibility criteria

• Malaysian entrepreneurs aged between 18 to 60 years old

• Possess a valid business licence or permit or registration

• No unsatisfactory record with financial institutions and Government agencies

• Entrepreneurs directly involved in the business

• Existing business borrowing should be within the range of RM5,000 to RM20,000 subject to the type of TEKUN financing scheme

Type of assistance / Form of financing

• TEKUN Business (TEKUN Niaga)
• Additional working capital for fixed and mobile stall or business premise to undertake services, transportation and manufacturing activities

• TEKUN Business Venture (TEKUN Rakan Niaga)
• Funding for joint venture business package with TEKUN i.e. beauty products, frozen food, tuition centre and others as specified by TEKUN

• TEKUN Start up (TEKUN Tunas)
• Start-up capital for potential and new entrepreneur to operate fixed or mobile stall or business premise to undertake services, transportation and manufacturing activities

• TEKUN Animal Husbandry (TEKUN Ternak)
• Provide financing to start or expand business or project in animal husbandry such as cattle and goat rearing, breeding bird (Puyuh), fresh water fish and prawns

• TEKUN Agriculture (TEKUN Tani)
• Provide financing to start or expand business or project in agriculture such as planting banana, corn, sugar cane and vegetables or ornamental plant such as orkid, cactus and bonsai tree/plant

• TEKUN Short Term Financing package (TEKUN Jangka Pendek)
• Working capital financing ranging from RM500 to RM2,000 with weekly repayment period between 1 to 3 months to operate business stall for day or night market, Ramadhan Bazaar, Exposition and Sales Promotional activities

• TEKUN Tourism (TEKUN Pelancongan)
• Provide financing to start or expand business or project in tourism sector for activities such as Homestay program, chalet, recreational equipments, agro-tourism and others as specified by TEKUN

Application procedure

• Contact the nearest TEKUN’s office

• Attend briefing by YTN

• Application to be submitted to Yayasan Tekun Nasional

Contact
Yayasan TEKUN Nasional

No. 2, Wisma Matmunap
Jalan 4/146, Metro Centre
Bandar Tasik Selatan
57000 Kuala Lumpur
Tel : 03-9058 8550
Fax : 03-9059 5980

Other Information please log on to website : www.tekun.gov.my